Outbrain Layoffs: Open Web Recommendation Platform Fires 90 Employees As Demand Reduces
Israeli-founded company Outbrain has fired 10% of its workforce in the second round of layoffs.
New Delhi, June 2: Outbrain is known for its open web recommendation platform. Now, the Israeli-founded company is implementing its second round of layoffs. The new layoffs will result in approximately 90 employees being let go. This accounts for around 10% of the company's total workforce.
Last July, the company had already laid off 38 employees after securing $200 million in funding from The Baupost Group, a Boston-based investment manager. Zendesk Layoffs: Global SaaS Platform Lets Go of 8% of Its Workforce, About 320 Employees Fired.
Despite raising $160 million and being valued at $1.12 billion during its IPO two years ago, Outbrain's market capitalization has dwindled to just $236 million.
In the first quarter of 2023, Outbrain generated revenue of $231.8 million, reflecting a decline of $22.4 million (9%) compared to the same period the previous year. This decrease was primarily attributed to a drop in revenue of approximately $51.6 million, resulting from an 80% net revenue retention rate among existing media partners.
Outbrain explained that the lower yields were mainly due to reduced demand on the platform, influenced by macroeconomic conditions, the impact on advertising expenditure, and unfavourable foreign currency effects.
The company incurred a net loss of $5.6 million in the same period, in contrast to a net loss of $1.9 million in the previous year. ZipRecruiter Layoffs: Job Search Engine Reduces Its Global Headcount by About 270 Employees.
"Today, we shared some difficult news with the company's employees when we decided to say goodbye to about 10% of Outbrain's global workforce. The past year has brought with it rapid changes in the industry and sector, including reductions in personnel. In light of this, we have taken several steps to streamline the company's operations, which will give us the tools to continue to lead the industry and invest in our targeted growth engines," Outbrain said in a statement.
"Reducing the workforce is not a decision we took lightly. But alongside other actions taken, we believe this is the right decision in order to drive the company into the future and best support our customers and partners around the world," it added.
(The above story first appeared on LatestLY on Jun 02, 2023 09:35 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).